Property Buying Plans Which are Suitable Installments or Full Payments

Property Buying Plans Which are Suitable Installments or Full Payments

Most of the real estate developers in the country offer convenient three-year- to five-year plans to pay for a property in installments. The payment plan typically involves an initial ten percent to twenty percent down payment. Then there are quarterly or monthly fixed installments on a particular due date. The payment plan also usually comprises a final installment due when the property is ready for possession. Normally, the buyer or investor cannot sell the property until payment of all installments is complete. The following are some significant reasons to purchase a property in installments.

Payment Plan

One of the greatest parts about paying for a property in installments is that you do not need to worry about cost changes. This is often the case with owners and their rental policies. The property is offered at a fixed installment rate with a full of set payment schedule and a due date. Pay your dues on time, and you will ultimately own the house. It is as simple as that.

Lack of Enough Funds

One of the main reasons why people choose an installment plan is that they do not have the money in hand for purchase. While you might have sufficient financial resources, investing in real estate is quite rarely easy on the pocket. If you are unable to free up cash but do not want to miss out on adding a new property to your portfolio, then installment plans provide you the flexibility and room to manage your finances.

Protecting your life Savings

Of course, for the majority of investors, the only reason to take an installment plan is to avoid putting all their eggs in one basket. Their goal is to diversify their portfolio rather than using all of their hard-earned savings to buy only one property. Some homeowners might also want to save money for a rainy day in case of difficult times or emergencies.

Payment in Cash

Now let us discuss paying for a property in cash. So that we can assist you in choosing between installments or full payment. Cash buying, while often preferred by developers and builders, is rarely a convenient option for buyers, which is why you have the possibility of choosing an installment plan. But, paying in full for property offers its own share of advantages, including:

Instant Ownership of the House or Property

The faster processing time of cash buys is ideal for sellers as well as buyers. They receive immediate ownership of the property. Besides, they can transfer or sell the property as per their desire. Paying for a property in cash also carries away the possibility of being able to pay for it in the future.  Particularly, if you fear being unemployed or are close to retirement.


By taking away the risk and giving you definite ownership of the house, paying in full for the property gives a better sense of security and peace of mind. You are no longer left questioning what could happen in the future. You get to add the house to your investment portfolio instantly. Moreover, you have full security that nobody can take it away from you now. The fact that you will never lose sleep over how you will pay the future installments is a blessing that comes with paying cash for a home.

Lessens the Overall Value of the Property

Well, if you are getting the house at a discount, you will automatically be paying less in the long run. But even without formally declaring a discount, cash payments on properties will always cost you less if you count all the installment costs and match them to the one-off payment. Eventually, sellers like cash buyers accommodate all such investors respectively, indicating you get to spend less and get a new house to your name quicker than many others who opted for the installment plan.